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<br />royalty regulations in effect at the time the Lessee
<br />requests approval to pay advance royalties in lieu of
<br />continued operation.
<br />Sac. 3. BONDS - Lessee shall maintain in the proper
<br />office a lease bontl in the amount of 532,000. The
<br />authorized officer may require an increase in this amount
<br />when additional coverage is determined appropriate.
<br />Sac. 4. DILIGENCE - This lease is subject to the
<br />conditions of diligent development and continued
<br />operation, except Chat these conditions are excused when
<br />operations under the lease are interrupted by strikes, the
<br />elements, or casualties not attributable to the Lessee.
<br />The Lessor, in the public interest, may suspend [he
<br />condition of continued operation upon payment of advance
<br />royalties in accordance with the regulations in existence
<br />at the time of the suspension. Lessee's failure to
<br />produce coal in commercial quantities by October 1, 2008,
<br />shall terminate the lease. Lessee shall submit an amended
<br />operation antl reclamation plan putsua nt to Section 7 of
<br />the Pct (30 U.S.C. 207 (c) within 3 years of the date of
<br />modification or prior to approval to commence mining
<br />operations.
<br />The Lessor reserves the power to assent to or order the
<br />suspension of the terms antl conditions of Chis lease in
<br />accordance with, inter olio, Section 39 of the Mineral
<br />Leasing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING VNIT (LMU) - Either upon approval
<br />by the Lessor of Che Lessee's application or at the
<br />direction of [he Lessor, this lease shall become an LMU or
<br />part of an LMU, subjecc to the provisions set forth in the
<br />regulations. The stipulations established in an LMU
<br />approval in effect at the time of LMU approval or
<br />modification will supersede the relevant inconsistent
<br />[e rms of this lease so long as the lease remains committed
<br />to the LMU. If the LMU of which this lease is a par[ is
<br />dissolved, the lease shall then be subject to the lease
<br />terms which woultl have been applied iF the lease had not
<br />been included in an LMU.
<br />operations within an approved mining permit area shall be
<br />submitted to the authorized officer.
<br />Lessee shall carry on all operations in accordance with
<br />approved methods and practices as provided in the
<br />operating regulations, having due regard for the
<br />prevention of injury io life, health, or property, and
<br />prevention of waste, damage or degradation any land, air,
<br />water, cultural, biological, visual, and other resources,
<br />including mineral deposits and formations of mineral
<br />deposits not leased hereunder, and to other land uses or
<br />users. Lessee shall take measures deemed necessary by
<br />Lessor Co accomplish the intent of Chis lease term. Such
<br />measures may include, but not limited to, modification Co
<br />proposed siting or design of facilities, timing of
<br />operations, and specifications of interim antl final
<br />reclamation procedures. Lessor reserves to itself the
<br />right to lease, sell, or otherwise dispose of the surface
<br />or other mineral deposits in [he lands and the right to
<br />continue existing uses and to authorize future uses upon
<br />or in the leased lands, including issuing leases for
<br />mineral deposits not coveretl hereunder and approving
<br />easements or rights-of-way. Lessor shall condition such
<br />uses to prevent unnecessary or unreasonable interference
<br />with rights of Lessee as may be consistent with concepts
<br />of multiple use and multiple mineral development.
<br />Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EQUAL
<br />OPPORTUNITY - Lessee shall: pay when due all taxes
<br />legally assessed and levietl under the laws of the State or
<br />the United States; accord all employees complete freedom
<br />of purchase; pay all wages at least twice each month in
<br />lawful money of the United States; maintain a safe working
<br />environment in accordance with standard industry
<br />practices; restrict the workday to not more than 8 hours
<br />in any one day for underground workers, except in
<br />emecgences; and Cake measures necessary to protect the
<br />health and safety of the public. No person untler the age
<br />of 16 years shall be employed in any mine below the
<br />surface. To the extent that laws of the Slate in which
<br />the lands are situated are more restrictive than the
<br />provisions in this paragraph, then the State laws apply.
<br />Sec. 6. DOCUMENTS, EVIDENCE AND INSPECTION - At such
<br />times and in such form as Lessor may prescribe, Lessee
<br />shall furnish detailed statements showing the amounts and
<br />quality of all products removed and sold from the lease,
<br />the proceeds therefrom, and the amount used for production
<br />purposes or unavoidably lost.
<br />Lessee shall keep open at all reasonable times far the
<br />inspection of any duly authorized of Eicer of Lessor, the
<br />leasetl premises and all surface and underground
<br />improvements, works, machinery, ore stockpiles, equipment,
<br />and all books, accounts, maps, and records relative Co
<br />operations, surveys, or investigations on or under the
<br />leased lands.
<br />Lessee shall allow Lessor access to and copying of
<br />documents reasonably necessary to verify Lessee compliance
<br />with terms and contli[ions of the lease.
<br />While this lease remains in effect, information obtained
<br />under this section shall be closed [o inspection by the
<br />public in accordance with the Freedom of Information
<br />Ac tiro (6 U.S.C. 552).
<br />Sec. 7. DADWGES TO PROPERTY AND CONDUCT OF OPERATIONS -
<br />Lessee shall comply at its oun expense with all reasonable
<br />orders of the Secretary, respecting diligent operations,
<br />prevcntion of was m, and protection of other resources.
<br />Lessee shall not conduct exploration operations, other
<br />than casual use, without an approved exploration plan.
<br />All exploration plans prior to the co~mnencement of mining
<br />Lessee will comply with all provisions of Ekecut ive Order
<br />No. 11246 of September 29, 1965, as amended, and the
<br />rules, regulations, and relevant orders of the Secretary
<br />of Labor. Neither Lessee nor Lessee's subcontractors
<br />shall maintain segregatetl facilities.
<br />Sec. 9. (e) TRANSFERS - This lease may be transferred in
<br />whole or in part to any person, association or corporation
<br />qualified to hold such lease interest.
<br />Transfers of record title, working or royalty interest
<br />must be approved in accordance with the regulations.
<br />(b) RELINQUISHMENTS - The Lessee may relinquish
<br />in writing at any time all rights under this lease or any
<br />portion thereof as provided in the regulations. Upon
<br />Lessor's acceptance of the relinquishment, Lessee shall be
<br />relieved of all future obligations under [he lease or the
<br />relinquished portion thereof, whichever is applicable.
<br />Sac. 30. DELIVERY OF PREMISES, REMOVAL OF MACHINERY,
<br />EQUIPMENT, ETC. - At such times as all portions of [his
<br />lease are ieturnetl Co Lessor, Lessee shall deliver up to
<br />Lessor the lantl leased, undergrountl [imbeting, and such
<br />other supports and structures necessary fur [he
<br />preservation of the mine workings on the leased premises
<br />or deposits and place all workings in condition for
<br />9 uspenslon of abantlOnmen[. Wlfhin 180 tlays thereof,
<br />Lessee shall remove from [he premises all other
<br />structures, machinery, equipment, tools, and materials
<br />that it elects to or as required by the authorized
<br />officer. Any such structures, machinery, equipment,
<br />
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